Bronchopulmonary dysplasia (BPD) is a common pulmonary complication of prematurity. A primary objective in treating ventilator-dependent premature infants is to minimize chronic lung damamge associated with BPD. Ventilaator support and oxygen supplementation must therefore be reduced expeditiously. Studies have demonstrated that intravenous dexamethasone hastens this outcome. However, corticosteroids ae most commonly initiated only after the development of significant lung damage, ie. between two and four weeks after birth. We will assess the effect of inhaled beclomethasone, inititated within the first 5 days of life, on pulmonary function, pulmonary inflammation, and duration of mechanical ventilation in premature neonates with severe respiratory distress syndrome. This is the first study to assess the efficiacy and adverse effects of inhaled steroids initiated early in the pathologic and inflammatory process.